“Despite potential signs of de-escalation in the Middle East, lasting damage to oil and gas infrastructure in the region and the risk of continued disruption to shipments via the Strait of Hormuz could keep energy prices high in coming months.
High fuel prices and shortages force consumers to buy fewer goods. Businesses invest less and governments conserve scarce resources, causing economies to experience weaker growth. The enduring disruption of an energy shock can trigger the destruction of demand, driving economies towards stagnation and recession.

Middle-income and developing economies have been hit first and worst because of the higher energy intensity of their economies. In Asia in particular, they also lack domestic oil and gas production and have relied heavily on supplies from the Middle East.

More energy is needed per unit of economic output in manufacturing and export-led developing countries such as Thailand than in a services-dominated economy such as Belgium.“

https://www.ft.com/content/a9f56d68-4cdd-47f7-873e-ca6ac0ea8962?syn-25a6b1a6=1

#Asia #Oil #Energy #EnergyRationing #Iran #War